Delhi High Court orders SpiceJet to ground 3 engines for default on payment to lessors

The Delhi High Court recently ordered SpiceJet to ground three engines leased from two French lessors after the airline defaulted on rental lease payments..In an order passed on August 14, Justice Manmeet Pritam Singh Arora ordered SpiceJet to ground these engines by August 16 and return them to lessors, Team France 01 SAS and Sunbird France 02 SAS, in 15 days.“In view of the aforesaid findings, this Court has no option but to direct the defendant [Spicejet] to ground the three (3) engines with effect from 16.08.2024. The defendant will take steps to ensure that the engines are redelivered to plaintiff within fifteen (15) days from today. To this effect, the defendant is directed to offer prior inspection of the engines to the plaintiff through its authorized representative at the Delhi Airport within seven (7) days and to facilitate the said inspection, the defendant is directed to make available passes to the plaintiff’s authorized representatives,” the Court ordered.Justice Arora clarified that SpiceJet will remain liable for making payments of the outstanding amount of US$ 4.8 million as well as the weekly payments arising on account of the use of the engines..The Court passed the order on pleas filed by Team France 01 SAS and Sunbird France 02 SAS claiming that SpiceJet owes them several millions dollars. The Court considered the case and held that SpiceJet is a defaulter and has no legal and contractual right to continue using the engines..Senior Advocate Rajshekhar Rao and advocates Anandh Venkataramani, Saket Satapathy, Anubhav Dutta, Mansi Tyagi, Akshita Totla, Vishakha Gupta, Rishit Vimadalal and Devvrut represented Team France 01 SAS and Sunbird France 02 SAS.SpiceJet was represented by Senior Advocate Sandeep Sethi and advocates KR Sasi Prabhu, Kartikeya Asthana and Manan Shishodia. .[Read Order]